Hackers have stolen sensitive information from cryptocurrency exchange Coinbase, including names, dates of birth, and partial social security numbers, to conduct scams against customers. The attackers are demanding a $20 million ransom payment in bitcoin, but the company’s CEO says it will refuse to pay.
Coinbase stated that some customer service agents living outside the US were bribed by the hackers to obtain personal data from customers. This stolen information allows the hackers to impersonate Coinbase staff and trick customers into sending their funds to attackers through social engineering attacks.
The company did not reveal how many customers were affected, but pledged to reimburse those who fell victim to these scams. In a filing with the Securities and Exchange Commission, Coinbase estimated that it would spend between $180 million and $400 million on remediation costs and customer reimbursements.
Coinbase CEO Brian Armstrong issued a statement saying that the company will not pay the ransom and instead is offering a $20 million bounty for information leading to the arrest of the attackers. He warned that those involved in extortion or harming customers would face prosecution and justice.
Source: https://apnews.com/article/coinbase-hack-crypto-exchange-ransom-e3ef5297dfea296eb7b7320d8c58647e